Compute the activity rate for each activity pool.

$\backslash$table$[[$Activity Cost Pool,Estimated Overhead Cost,Expected Activity,Activity Rate$],[$Machine Setups,,,$],[$Special Processing,,,$],[$General Factory,,,$]]$

Overhead is assigned to the two products as follows:

Rims:

$\backslash$table$[[$Activity Cost Pool,Activity Rate,Activity,ABC Cost$],[$Machine Setups,,,$],[$Special Processing,,,$],[$General Factory,,,$],[$Total Factory Overhead,,,$]]$

Posts:

$\backslash$table$[[$Activity Cost Pool,Activity Rate,Activity,ABC Cost$],[$Machine Setups,,,$],[$Special Processing,,,$],[$General Factory,,,$],[$Total Factory Overhead,,,$]]$

Determine the total and unit product cost of each product $($Rims and Posts$)$ according to the ABC system.

$\backslash$table$[[,$Rims,Posts$],[$Direct materials:,,$],[$Direct labor:,,$],[$Manufacturing Overhead:,,$],[$Unit cost$,,]]$

Part II

List and describe the steps $($in order$)$ for Implementing Activity Based and Costing.

Identify and describe the limitations of Activity Based Costing.